The Bankrupt Cryptocurrency Exchange’s Staked Assets
A bankrupt cryptocurrency exchange has staked approximately $170 million in various crypto assets, including Solana, Ethereum, and MATIC. According to blockchain data, the defunct platform has staked over 5.5 million SOL and more than 24,000 ETH.
FTX’s Move to Staking
Staking is the practice of locking up cryptocurrencies on a blockchain network to support it and earn token rewards at a predetermined rate. Recently, over 5.5 million SOL was sent from an FTX-identified wallet to Figment, a staking validator service catering to institutional investors. This move comes amidst FTX’s legal troubles, with allegations of fraud and misappropriation of billions in customers’ funds surfacing.
During the proceedings, FTX’s former lead engineer, Nishad Singh, highlighted questionable money and investment decisions made by FTX under the leadership of SBF.
Hot Take: FTX’s Controversial Staking Strategy
Despite its bankruptcy status and ongoing legal issues, FTX’s decision to stake significant amounts of crypto assets raises eyebrows. The move could be seen as an attempt to generate additional income or preserve value amidst the platform’s uncertain future. However, it also raises concerns about the potential misuse or mishandling of customers’ funds. As the legal battle continues and investigations unfold, stakeholders are closely watching FTX’s staking activities for further insights into the company’s financial situation.
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